Coke and its smaller rival PepsiCo Inc have been focusing on healthier drinks to garner market share as health-conscious consumers shift away from sugary sodas.
Coca-Cola had earlier this year launched new flavors of its popular Diet Coke brand in slimmer packaging and debuted Coca-Cola Stevia No Sugar in New Zealand and dairy-free smoothie AdeZ in Europe in the quarter.
Organic revenue, or sales from its core beverage business, rose 5% in the quarter, with Diet Coke, Coke Zero, and sparkling water contributing the most.
Volumes, a key indicator of demand, grew 2% in the quarter on strong performance of its trademark Coca-Cola brand, as wellas Fuze Tea.
Organic sales in Europe rose 7% after the company reformulated its recipe for a few sodas in response to the UK’s tax on sugar.
“We were impressed with Coca-Cola’s ability to deliver a strong and balanced top line,” Wells Fargo analyst Bonnie Herzog wrote in a note.
Sales in North America, its primary revenue-generating region, rose 7% to US$3.12 billion (RM12.62 billion), but missed analysts’ average estimate of US$3.14 billion (RM12.7 billion), mainly due to a drop in demand for juices and plant-based beverages.
Net income attributable to the company’s shareholders rose to US$2.32 billion (RM9.38 billion), or 54 cents (RM2.18) per share, in the second quarter that ended on June 29, from US$1.37 billion (RM5.54 billion), or 32 cents (RM1.29) per share, a year earlier.
Excluding one-time items, Coca-Cola said it earned 61 cents (RM2.47) per share, beating analysts’ average estimate by a cent (RM0.04), according to Thomson Reuters I/B/E/S.
Revenue fell 8% to US$8.93 billion (RM36.12 billion), hurt by the divestiture of its low-margin bottling operations. Analysts had estimated sales of US$8.54 billion (RM34.54 billion).
Coca-Cola reaffirmed its 2018 profit outlook and said it expects full-year organic revenue to be at least 4%.
Shares of the Atlanta-based company were marginally up at US$45.50 (RM184.02) during pre-market hours.